WhatsApp Deal: What’s in it for Facebook?

Facebook recently made an outrageous $19 bn dollar deal with WhatsApp. This came as a surprise to the marketers across the world and is perhaps the biggest data acquisition ever witnessed in the era of the internet.

WhatsApp-Facebook deal

Image courtesy: www.figment.pl

Now along with Instagram and Paper, Facebook has gained access to another spring of information with WhatsApp which Facebook will analyze and use to its full marketing advantage. With over 190 million monthly active WhatsApp users and 400 million photos being shared every day, Facebook has entered into the mobile province with complete control over the demographic and geo-local data. 

With this Facebook not only has real-time user-level data access, but it has also entered into highly emerging markets where WhatsApp has complete control over. Also with fast-paced convenience and simple functionality, WhatsApp acts as a barrier to entry for other messaging service providers.

Furthermore, it has been rumored for a while that Facebook is declining in popularity with teenagers. The new generation is more inclined towards independent messaging services because of their changing needs and behaviors.

In the past, there have been other data acquisitions by global corporations. One example is that of Oracle, the second largest software company after Microsoft. It has acquired a number of marketing technology companies for soaring amounts and looks like Facebook is following its footsteps. The way Facebook and Oracle are growing shows that they have intensified their sphere of influence and potential as any other leading global corporation .These companies clearly know that customer data is the fuel which drives the business by benefiting consumers and marketers.

This shows us that Facebook has certainly made a smart move by acquiring WhatsApp. But is the deal really worth $19bn? We would love to know your opinions in the comments below!

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